The research proposed will continue and expand a long-term (2 years post-discharge) comparative outcome study of two groups (N equals 120 each) of young, first-break schizophrenics; one treated in non-professionally staffed community residences, the second receiving "usual" treatment on the wards of community mental health centers. The philosophy of the community residences is one we have termed a "developmental crisis" orientation. The psychotic experience is viewed as a crisis requiring that the experience be taken seriously, and that the individual be allowed to experience it in the context of a warm, empathetic, supportive, facilitative human relationship. In so much as possible, it should not be quelled, repressed, or aborted with phenothiazines. The overall aim of these residences is to enhance the possibility that the psychosis will be integrated into the continuity of the individual's life, a state which has been shown to be associated with better long-term outcome. Data obtained at several points in time (admission, discharge, 1, 6, 12, 18, and 24 months post-discharge) from a variety of points of view (independent psychiatric, house/ward staff, family and self reports), which assess outcome in terms of symptoms, overall level of psychosocial functioning, and internal change, will be compared across groups. These data will be subjected to analyses of variance and covariance for repeated measures over time. Short and long-term comparative costs will be compared, and we will attempt to identify subgroups of responders and non-responders to the different milieus. Our specially trained non-professional staff will be studied and compared with other mental health personnel. Their relationships and interactions with patients (therapeutic "process") will be studied and correlated with outcome.